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ROI Calculator

Calculate Return on Investment (ROI) for different investment types with our comprehensive ROI calculator.

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Return on Investment (ROI) Calculator

Calculate and compare ROI for different investment types

3 years

Additional annual income from the investment (dividends, interest, etc.)

Results

Total ROI

50.00%

Over 3 years

Annualized ROI

14.47%

Per year

Initial Investment$10,000
Final Value$15,000
Periodic Cash Flows$0
Total Profit$5,000

What is ROI?

Return on Investment (ROI) measures the profitability of an investment by dividing the net profit by the cost of the investment and expressing it as a percentage. A higher ROI means the investment is more profitable.

ROI Comparison

Compare ROI across different investment types

StandardAnnualizedReal EstateBusiness0%50%100%150%200%
  • ROI (%)

Understanding ROI Types

Standard ROI

The basic ROI calculation that measures the return relative to the initial investment. Formula: (Final Value - Initial Investment + Cash Flows) / Initial Investment × 100

Annualized ROI

Adjusts the ROI to show an annual rate of return, useful for comparing investments with different time horizons. Formula: ((1 + ROI)^(1/n) - 1) × 100, where n = number of years

Real Estate ROI

Considers both cash flow from rental income and property appreciation. Cash-on-Cash Return specifically measures the annual cash flow relative to cash invested.

Business ROI

Measures the profitability of a business investment by comparing annual profits to the initial investment over the project lifespan.